Lithium Mining High Prosperity Continues, Lithium Price Surge Grab Lithium War Continued

On the evening of June 7, Sheng New lithium (002240.SZ) released a pre-increase announcement said that the net profit attributable to shareholders of listed companies in the first half of the year (referred to as "net profit") 2.6 billion yuan - 2.9 billion yuan, year-on-year growth of 793.90%-897.04%, the highest pre-increase of nearly 9 times.

For the substantial growth in performance, Sheng New lithium said that the rapid development of new energy industry in the reporting period, the strong growth of demand for lithium from downstream customers, the company's sales price of lithium increased significantly compared with the same period last year.

It is worth mentioning that in the first quarter of 2022, Shengxin Lithium energy achieved revenue of 1.687 billion yuan, with a year-on-year growth of 212.59%, and net profit of 1.07 billion yuan, with a year-on-year growth of 900.96%.

Shengxin锂的令人印象深刻的表现not limited to 2022.

Read sheng Xin lithium 2021 annual report found that its current period to achieve operating revenue of 2.934 billion yuan, net profit of 851 million yuan, year-on-year growth rate was 63.88%, 3030.29%. As can be seen, the net profit increased by more than 30 times compared to the same period in 2020.

Sheng new lithium performance strong growth, behind the sturm und drang of lithium salt.

Since the beginning of 2021, battery grade lithium carbonate price quietly up. Shengxin Lithium energy also mentioned in the annual report that under the double stimulation of relatively tight lithium supply and rising industrial demand, the price of lithium continues to rise. The price of battery grade lithium carbonate rose from 53,000 yuan/ton at the beginning of 2021 to 277,500 yuan/ton at the end of the year.

Enter 2022, battery grade lithium carbonate price rise is more astonishing. By the end of March, battery grade lithium carbonate had risen to more than 500,000 yuan per ton, up more than 80% compared with the beginning of the year.

Since the second quarter, lithium carbonate prices have fallen. But they remain high. According to public data, battery grade lithium carbonate has remained stable since April 25 after maintaining the price of 470,000 yuan/ton.

The recent two lithium auction, once again ignited the lithium war, may confirm that battery grade lithium carbonate is only platform finishing, later or will rise again.

On May 16, 54.29% of the shares of Xuewei Mining Development Co., LTD., Yajiang County, Sichuan Province, was auctioned on JD.com. After 3,448 bids, it was finally sold at a price of 2 billion yuan at a premium of nearly 600 times.

It is worth mentioning that the market still commands a high premium even after Snowe entered bankruptcy liquidation, mainly because its Dethrababa lithium mine is one of the most abundant lithium resources in Sichuan and Asia.

On May 24, Pilbara, an Australian lithium miner, sold its fifth auction of lithium concentrate on the BMX platform at a record price of $5,955 a tonne.

In the face of continued high prosperity of lithium, Sheng New lithium said in the annual report, has been stripped of rare earth and other businesses, focusing on new lithium materials.

Specifically, Shengxin Lithium has four major lithium product production bases: Zhiyuan Lithium with an annual output of 40,000 tons of lithium salt, Suining Shengxin with an annual output of 30,000 tons of lithium salt, India Shengtop with an annual output of 60,000 tons of lithium salt, and Shengwei Lithium with an annual output of 1,000 tons of metal lithium project.

In the stripping of rare earth business at the same time, Sheng New lithium can increase the pace of investment in lithium mines. In China, Shengxin lithium has increased its shareholding in Huirong Mining Co., LTD., Yajiang County, Sichuan province. Abroad, Shengxin lithium has acquired 51% equity of Sabixing Lithium tantalum mine project in Zimbabwe and SESA Company in Argentina (acquiring the operation right of SDLA Salt Lake project), and participated in several initial salt lake exploration projects in Argentina through equity participation.